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Jubilant FoodWorks today said it is planning to invest Rs 250 crore in the current fiscal on capital expansion in order to maintain growth.
The company, which reported over 5% increase in net profit for the first quarter of the fiscal, will fund expansion from internal accruals.
"The growth story is absolutely intact, and the growth will be driven by the investments we make. This year we will invest Rs 250 crore for capital expansion," Jubilant FoodWorks CEO Ajay Kaul said.
The company today reported 5.13% increase in its standalone net profit at Rs 34 crore for the first quarter ended June 30, 2013.
The company had reported a net profit of Rs 32.34 crore during the same quarter a year ago.
Jubilant FoodWorks' net sales during the quarter under review were at Rs 396.42 crore, up 26.07%, compared with Rs 314.44 crore in the corresponding period last year.
Jubilant FoodWorks will open 125 Domino's Pizza and 18 Dunkin' Donuts restaurants during the current financial year.
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"Topline performance driven growth in Domino's Pizza was on account of expansion in the network of restaurants, where coverage has improved both within existing cities and by way of entering new cities," the company said.
Profits remained at stable levels owing to consumer spends having moderated, increase income tax surcharge and depreciation expense due to rapid expansion of restaurant network, the company said in a statement.
Overall expenses during the quarter were at Rs 347.72 crore, an increase of 29.31% as against Rs 268.89 crore in the same quarter last year.
